Compares your tax liability under the new regime (default) and the old regime (with deductions), for a resident individual below 60. Slabs unchanged from FY 2025-26 per Budget 2026.
The new tax regime (default since FY 2023-24) offers lower slab rates but removes most deductions and exemptions — you just get a flat standard deduction (₹75,000 for FY 2026-27). The old regime has higher slab rates but lets you claim deductions like Section 80C (₹1.5 lakh), 80D (health insurance), HRA, and home loan interest, which can bring your effective tax down significantly if you have enough eligible deductions.
Whether the new or old regime works out cheaper for you depends entirely on how many deductions you can actually claim — someone with minimal 80C/80D investments and no HRA/home loan usually does better under the new regime, while someone with substantial deductions may still save more under the old regime.
The new tax regime is the default from FY 2023-24 onward. If you want the old regime, you need to actively opt for it when filing your return (and salaried employees need to inform their employer for TDS purposes).
Salaried individuals (with no business income) can switch between the old and new regime every financial year when filing their return. Those with business income have more restricted switching rules.
Yes, a few — including the standard deduction (₹75,000), employer's NPS contribution under Section 80CCD(2), and a few others, but not the bulk of deductions available under the old regime like 80C, 80D, or HRA.